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The party's origins lay in the Bulgarian Social Democratic Workers' Party (Tesnyatsi) (Tesni Socialisti, "Narrow Socialists"), which was founded in 1903 after a split in the 10th Congress of the Bulgarian Social Democratic Workers' Party.[1]

The party's founding leader was Dimitar Blagoev, who was the driving force behind the formation of the BSDWP in 1894. It comprised most of the hardline Marxists in the Social Democratic Workers' Party. The party opposed World War I and was sympathetic to the October Revolution in Russia. Under Blagoev's leadership, the party applied to join the Communist International upon its founding in 1919. Upon joining the Comintern the party was reorganised as the Communist Party of Bulgaria.

Georgi Dimitrov was a member of the party's Central Committee from its inception in 1919 until his death in 1949, also serving as Bulgaria's leader from 1946. In 1938 the party merged with the Bulgarian Workers' Party and took the former party's name. In 1948 the BWP merged (or reunited) with the Social Democrats to become the Bulgarian Communist Party once again.

Following Dimitrov's sudden death, the party was led by Vulko Chervenkov, a Stalinist who oversaw a number of party purges that met with Moscow's approval. The party joined the Cominform at its inception in 1948 and conducted purges against suspected "Titoites" following the expulsion of the Communist Party of Yugoslavia from the alliance. Suspected counter-revolutionaries were imprisoned. In March 1954, one year after Joseph Stalin's death, Chervenkov was deposed.

From 1954 until 1989 the party was led by Todor Zhivkov, who was very supportive of the Soviet Union and remained close to its leadership after Nikita Khrushchev was deposed by Leonid Brezhnev. His rule led to relative political stability and an increase in living standards.[2] The demands for democratic reform which swept Eastern Europe in 1989 led Zhivkov to resign. He was succeeded by a considerably more liberal Communist, Petar Mladenov. However, events soon overtook him, and on December 11 Mladenov announced the party was giving up its guaranteed right to rule. For all intents and purposes, this was the end of Communist rule in Bulgaria, though it would be another month before the provision in the constitution enshrining the party's "leading role" was deleted.